Bank Customer Support Loan

debtfreeby2013

I took a customer support loan with my bank in 2008 as I was, at the time in dire financial problems. I was told at the time that this would lead to a cap on my lending with the bank for 12 months but after this time I could take a further loan to refinance all my debts. This was not true.

I am still unable to obtain any credit from the bank despite having a good credit rating with them. I also have applied for a credit card elsewhere (was hoping to transfer my credit card debt) but have been turned down for any amount!!

I have looked at my credit file and have a score of 'good' (868ish) so was wondering, when applying for credit would companies look at the fact that my bank of 7 years have put a cap on my account and see me as a bad risk? If so would a change of bank account help? I'm in the process of changing anyway but just wondered of this could benefit me I other ways?

In case anyone wants to advise against me getting credit what I was planning on doing was moving my existing credit card debt (£3200ish) which has a rate of 17.5% APR to a credit card with less or even better 0% APR. I currently pay £150 a month to my credit card but £70 of that is the interest (minimum payment) so would be great if I could get a lower % and pay within 2 years rather than the current plan of 5-7.

And, yes, this credit card would no longer be used - in fact I haven't had the card for 3 years anyway (saving and paying for Christmas and car insurance and the like is a great feeling when not using credit!!)

innovate

The banks / card companies wouldn't be swayed by the credit score of a CRA. They will look at the amount you have already borrowed and make an assessment as to whether they'd lend you any more.

May be try the card forum for some insight into whether you would stand a chance to get a 0% balance transfer card anywhere.

debtfreeby2013

Thank you, I wasn't sure where exactly to post it due to asking about bank accounts, a loan and a credit card. Haha. Thank you though.

JuicyJesus

debtfreeby2013 wrote: »

I have looked at my credit file and have a score of 'good' (868ish) so was wondering, when applying for credit would companies look at the fact that my bank of 7 years have put a cap on my account and see me as a bad risk? If so would a change of bank account help? I'm in the process of changing anyway but just wondered of this could benefit me I other ways?

The score is useless. Ignore it.

What may be happening is the bank are reporting the loan to credit reference agencies as a "consolidated debt", as opposed to a "personal loan". The former is distinct and could be weighted against in credit scoring terms, as it is a sign that you have had difficulties paying your debts in the past and are therefore a higher risk. This plus a big credit card balance could be seen as a MAJOR negative.

In any event any lending cap within your bank is a matter for themselves only. They cannot report such a thing to CRAs.

In case anyone wants to advise against me getting credit what I was planning on doing was moving my existing credit card debt (£3200ish) which has a rate of 17.5% APR to a credit card with less or even better 0% APR. I currently pay £150 a month to my credit card but £70 of that is the interest (minimum payment) so would be great if I could get a lower % and pay within 2 years rather than the current plan of 5-7.

I'm not sure how you're getting charged £70 a month when:

(17.5%/12) x £3200 = £46.66

As a rough estimate. If you are paying more than a couple of quid over that figure on that amount of debt with (supposedly) that interest rate I would query it.

debtfreeby2013

JuicyJesus wrote: »

The score is useless. Ignore


I'm not sure how you're getting charged £70 a month when:

(17.5%/12) x £3200 = £46.66

As a rough estimate. If you are paying more than a couple of quid over that figure on that amount of debt with (supposedly) that interest rate I would query it.

Thank you for pointing that out, I assumed it was 17.5% as I'm sure that's what it used to be (can they change it if I miss payments etc as I have done in the very different past). The actual APR is 27.9%